Nvidia Stock Buyback: Cramer's $1 Trillion Call

Jim Cramer believes Nvidia should significantly enhance its stock buyback program, proposing an authorization of up to $1 trillion. He argues that Nvidia's shares are currently undervalued, not fully capturing the company's substantial growth and profitability. Cramer drew a parallel to Apple's strategy, which successfully reduced its share count through extensive buybacks over many years. Nvidia has recently increased its share repurchases, approving an $80 billion authorization in May and buying back nearly $40 billion in the first two quarters of fiscal year 2027. However, Cramer feels this is insufficient, advocating for a more aggressive approach to boost shareholder value. He suggested a buyback of half a trillion dollars to repurchase a tenth of the company rapidly. Despite Nvidia's strong revenue growth outlook of approximately 70% for fiscal 2028, its stock has seen modest gains since October 2025. Cramer also addressed concerns about Nvidia's role in financing AI infrastructure, dismissing worries about circular financing due to the resale value of its GPUs. He concluded that a substantial stock buyback would be a more appreciated capital allocation for Wall Street.